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IT Spending 2016: Growth to be Flat or Slightly Negative in 2016 but Brexit to Further Impact Negatively
The Brexit vote will be yet another hit to IT spending for 2016 announced Gartner this week. Global spending for IT declined 6 percent in 2015. At the beginning of the year Gartner forecast modest growth of .5 percent during the year. By May they revised their forecast to a negative .5 percent. By the end of June things had actually been coming around again and Gartner was ready to readjust the forecast back to .5 percent in the positive territory.
But then Brexit happened. John-David Lovelock, research vice president at Gartner, said that “with the U.K.’s exit, there will likely be an erosion in business confidence and price increases which will impact U.K., Western Europe and worldwide IT spending.”
But there’s hope. Lovelock said that “2016 marked the start of an amazing dichotomy. The pace of change in IT will never again be as slow as it is now, but global IT spending growth is best described as lackluster. 2016 is the year that business focus turns to digital business, the Internet of Things and even algorithmic business. To fund these new initiatives, many businesses are turning to cost optimization efforts centering around the new digital alternatives to save money, simplify operations and speed time to value. It is precisely this new breadth of alternatives to traditional IT that will fundamentally reshape what is bought, who buys it and how much will be spent.”
That sounds like some optimism for IT spending in 2017.
